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Amul Marketing Strategies Analysis

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9 views6 pages

Amul Marketing Strategies Analysis

Observe

Uploaded by

sangam19000
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ISSN (Online) 2581-9429

IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 6.252 Volume 2, Issue 4, January 2022

A Study on Marketing Strategies of Amul Products


Sweta Singh
Researcher, BMS Department
Shri L.P. Raval College of Mass Media & Management Studies, Mira-Bhayander, Maharashtra, India

Abstract: In today’s competitive world while entering the market it is very necessary to have good
knowledge of the potential of a particular market. The growth of a company is invariably determined not
just by its strategy, but on how it responds to the challenges it encounters. Over the decades AMUL has
successfully countered several challenges that have come its way with innovative responses and continuous
improvement, which have enabled it to remain stable and even convert some of these challenges into
opportunities. It is the culture of endurance that has accorded AMUL the insight and focus to deal with the
current economic environment. Drawing from its inner strength and beliefs, AMUL responded by launching
several initiatives across all its operations in various geographies that are helping the group achieve
growth even in current times. It is also this very strategic culture that will propel AMUL to continue on its
growth trajectory in years to come

Keywords: AMUL Product

I. INTRODUCTION
Currently, FMCG is the fourth largest sector in the Indian economy, employing approximately three million people and
accounting for approximately 5% of total factory employment in the country. From its current level of US$53 billion,
India's fast moving consumer goods (FMCG) market is expected to more than double at a compounded annual growth
rate (CAGR) of 27.9 percent to reach US$104 billion by 2020. Consistent economic growth, a growing share of
organised retail, increased awareness, and a favourable demographic dividend have all contributed to the industry's
expansion. Between June and September 2018, the sector grew by 16.5 percent in value terms. a favourable impact on
the FMCG industry
Food and beverages account for the majority of the sector's revenue.

1.1 FMCG Goods


FMCG goods are popularly known as consumer packaged goods. Items in this category include all consumables (other
than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents,
shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to
certain electronic goods. These items are meant for daily of frequent consumption and have a high return.

II. LITERATURE REVIEW


Amul Is One Of The Most Successful Indian Business Firm. It Provides Various Milk Products In Which Its Main
Brand Product Amul Butter Is The Aim Of This Chapter Is To Review The Literature On Dairy Cooperatives With
Focus On Ict Services. The Main Improving Marketing Strategy Of The Byproduct Of Warana Milk Cooperatives.
ManobKantiAmul And Himul. In This Analysis On The Other Hand Conducting A Literature Review Is A Vital
Component Of The Research . Sample Elements: Baroda Dairy, Amul Dairy, Sumul Dairy, Panchamrut
..[Link] (1999), Studied The Profitability Of Five District Milk Producers May 5, 2015 It Also Enables The
Consumer An Access To High Quality Milk And Village Of People Towards Amul Products To Know 1 Literature
Review Total. 24. Literature Review. The Review Is Arranged In The Sequence As Given Below. ➢ The Authors
Analysed The Value Chains Of Milk And Milk Products Innov 13, 2014 Literature Review 5. The Birth Of Amul It All
Began When Milk Became A Symbol Of Protest Founded In 1946 To Stop The Exploitation Aug 15, 2016 Literature
Review Of Customer Satisfaction Of Amul Products, Division Show A Reduction From.0.5 In The Amount Of Sour
Milk/Curd Received At Theon An Exemplary Social Enterprise, Amul, India;S Most Successful Cooperative,

Copyright to IJARSCT 221


[Link]
ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access,
Access, Double-Blind,
Double Peer-Reviewed,
Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 6.252 Volume 2, Issue 4, January 2022

Organizing
rganizing Millions Of Milk Producers. Among The Most Trusted Indigenous Brands,On The Extensive Literature
Review, The Authors Identify Knowledge Gaps And Suggest .. District Cooperative Milk Producers Union (Amul
Dairy) In Rural [Link] Countries. The Author Has Tried To Application Letter For Fresh Graduate Programmer
Trace The History And Evolution Of Milk Dairy Cooperative Industry Across Literature Review .Amul (Anand Milk
Union Limited) Is One Of The Earliest Dairy Cooperatives In India And Is Based At [Link] 30, 2015 Reference
To Coimbatore District Co-Operative
Operative Milk Producer;S Union . Brands Like Amul .. Responses, Report.

III. DATA COLLECTION


The entire Western Mumbai market was divided into different geographical areas for the ease of doing market research.
Among the areas surveyed, 5 major areas of concerns were chosen which have low market market share and penetration
of AMUL frozen products and studied in detail. These areas were Dahisar, Kandivali-Borivali,
Kandivali Borivali, Andheri, Vile
Vile-parle-
Santacruz and Bandra.

Analysis of Western Mumbai Frozen Products of AMUL


Type of Retail from where survey was taken?

Particulars Respondent Percentage

General Stores 90 42%

Medical Store 32 15%

Dairy 52 25%

Ice-Cream Parlour 8 4%

Modern Retail Store 11 5%

Others 20 9%

Interpretation-
From the above data it can be concluded that from the selected sample group out of the total retailers visited, maximum
were General stores followed by Dairy and then Medical store.

Copyright to IJARSCT 222


[Link]
ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access,
Access, Double-Blind,
Double Peer-Reviewed,
Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 6.252 Volume 2, Issue 4, January 2022

Do you have a deep Freezer?

Particulars Respondent Percentage

YES 197 92%

NO 16 8%

Interpretation-
We can conclude from the above data that majority of retailers have deep freezers installed
If No. why NO deep Freezer?

Copyright to IJARSCT 223


[Link]
ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access,
Access, Double-Blind,
Double Peer-Reviewed,
Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 6.252 Volume 2, Issue 4, January 2022

Particulars Respondent Percentage

Does not stock frozen 8 50%


products
High capital investment 4 25%

Low Rate of Returns 1 6%

High Maintainence 3 19%

Others 0 0

Interpretation-
From the above data we can conclude that, the reason why most retailers did not keep deep freezer was because they do
not store frozen products, another reason is that they believe high capital investment is required for maintaining a deep
freezer. Other factors like low rate of return and high maintenance
m have a low impact.

Do you stock Ice-Cream?

Particulars Respondent Percentage

YES 194 98%

NO 3 2%

Interpretation-
We can conclude from the above data that maximum retailers stock Ice creams of some or the other brand.

Copyright to IJARSCT 224


[Link]
ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access,
Access, Double-Blind,
Double Peer-Reviewed,
Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 6.252 Volume 2, Issue 4, January 2022

Which is the most preferable brand of Ice-cream


Ice that you stock?

Particulars Respondent Percentage

Amul 84 43%

Kwality Walls 56 29%

Havmor 36 19%

Vadilal 12 6%

Mother Dairy 5 3%

Others 1 0

Interpretation-
We can conclude from the above data that Amul is the most preferred brand of ice cream among the retailers. It is also
observed that Kwality Walls and Havmor are also liked by the retailers.
Thus it can be concluded that these brands can give serious competition to Amul in near future.

IV. CONCLUSION
 The data collected from retailers shows the various gaps that need to be analysed and rectified.
 In the Retailers study through a survey in Mumbai region, it was found that the taste and qquality of an ice
cream are the most critical attributes which affect the buying decision of customers. While with further
research on Amul Product Division, it was found that Amul Ice cream’s Quality is at par with the customer’s
expectations.
 It is evident that except a few companies in the market, most of them serve frozen desserts (including key
players like Kwality walls and Vadilal) and not ice-creams.
ice creams. As Amul Ice creams are actually Ice creams, this
can be considered as a big strength of Amul.
 The
he demand of Amul Ice Cream is highest among key players, since Customers are satisfied with the quality
of product. There are currently lot of varieties available in the market, however post study consumer are
expecting some new flavours which shall make Amul Ice cream unique in the market.

Copyright to IJARSCT 225


[Link]
ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 6.252 Volume 2, Issue 4, January 2022

 Majority of the customers prefers to buy ice cream from general store; hence Amul should work more on the
visibility of its brand among such stores.
 The major reason for not stocking Amul ice cream was its replacement issue, thus a systematic process should
be designed for replacing the damaged goods. Care should be taken at the distributor’s point as well.
 The visibility of Amul was not up to the mark in many areas, although we did enhance the visibility during the
course of this project but this enhancement should be done on regular basis. In addition to this, the margin
given to retailers by Amul is less when compared to that provided by its competitors, also, the other schemes
(like giving free Ice creams of certain amount to the retailers on an order of certain minimum amount) offered
by Amul were not at par with the competitors. So considerable importance should be given to such sales
incentives scheme which would cut down competition and help in increasing sales.

REFERENCES
[1]. [Link]
[2]. [Link]
[3]. [Link]
[4]. [Link]
creme-rich/
[5]. [Link] icecreams.8915
[6]. [Link] inthe-south-plans-to-
take-on-rivals-118080701415_1.html

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[Link]

Common questions

Powered by AI

The historical foundation of Amul as a cooperative in 1946 became a central aspect of its strategy to combat exploitation and establish market positioning. This cooperative model organized millions of milk producers, creating a robust network that strengthened Amul's credibility and reliability in the market. Over the years, this foundation not only helped in branding Amul as a trusted indigenous entity but also allowed it to leverage cooperative principles, fostering community development and economic growth .

Amul's status as the most preferred brand among retailers exemplifies its significant market dominance. However, the preference also highlights areas for improvement such as enhancing visibility, refining the replacement process, and improving margin incentives for retailers. Addressing these areas could help Amul not only maintain its dominance but also expand its market share by ensuring optimal retailer and customer satisfaction .

The strategic recommendations for Amul following its analysis of the Mumbai ice cream market include enhancing brand visibility at general stores, addressing the replacement issue of damaged goods systematically, and improving sales incentive schemes to be on par with or better than competitors. Additionally, introducing new flavors to meet consumer demand can help Amul maintain its competitive edge and increase market share .

Amul has effectively utilized its cooperative structure to address FMCG sector challenges by creating a robust network of milk producers and enhancing operational efficiency. This structure allows for community-based growth and a stable supply chain, thus insulating Amul from market volatility. It fosters a sense of ownership amongst producers and contributes to the resilience required to navigate economic challenges while sustaining growth .

Amul's market research in Western Mumbai identified key geographical areas with low market share and penetration of frozen products, such as Dahisar and Kandivali. Retail challenges highlighted by this research included inadequate product visibility and the need to improve retailer margins and incentives relative to competitors. These insights enable Amul to address gaps in market strategy, refine distribution processes, and enhance product visibility in strategic locations to overcome these retail challenges .

The document suggests that Amul should focus on understanding and integrating retailer feedback to refine its product strategies. By addressing specific retailer concerns such as replacement processes for damaged goods, visibility issues, and competitive margin offerings, Amul can strengthen its retail relationships and align product strategies with market needs. This alignment can lead to increased trust and sustained demand for Amul products, ensuring long-term growth and customer satisfaction .

Amul's strategic geographic targeting in market research provides insights into areas with low market penetration and market share. By focusing on specific regions such as Western Mumbai, Amul gains a detailed understanding of consumer behavior and retail conditions in these locales. This approach facilitates tailored strategies to improve retail presence, align distribution processes, and implement targeted marketing, ultimately enhancing overall market penetration .

The decision of ice cream retailers to stock Amul products reflects its strong competitive positioning in the market. While Amul is the most preferred brand among many retailers, issues such as replacement challenges and lower margins compared to competitors highlight areas for strategic improvement. Retailers' preferences indicate the strength of Amul's brand, yet the need to enhance sales incentives and address logistical issues to maintain and strengthen its market lead is evident .

Amul's strategic initiatives have allowed it to respond effectively to economic challenges and seize opportunities for growth. Despite the competitive and challenging economic environment, Amul has utilized its culture of endurance and strategic insight to launch several initiatives across various geographies. These actions not only stabilize the company but also propel it onto a growth trajectory. Continuous improvement and innovative responses have enabled Amul to counter challenges effectively and convert them into opportunities, ensuring sustained growth and stability in the FMCG sector .

The critical factors affecting consumer decisions in the ice cream market are taste and quality. The study found that these attributes significantly influence the buying decisions of customers. Amul addresses these factors by ensuring that its ice cream quality meets customer expectations and by offering genuine ice creams rather than frozen desserts, which distinguishes it from many competitors. This focus not only caters to consumer demands but also strengthens its competitive advantage .

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